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Sanctions and export deflection: evidence from Iran

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  • Haidar, Jamal Ibrahim

Abstract

Do export sanctions cause export deflection? Data on Iranian non-oil exporters between January 2006 and June 2011 shows that two-thirds of these exports were deflected to non-sanctioning countries after sanctions were imposed in 2008, and that at this time aggregate exports actually increased. Exporting firms reduced prices and increased quantities when exporting to a new destination, however, and suffered welfare losses as a result.

Suggested Citation

  • Haidar, Jamal Ibrahim, 2017. "Sanctions and export deflection: evidence from Iran," MPRA Paper 111937, University Library of Munich, Germany.
    • Handle: RePEc:pra:mprapa:111937
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    References listed on IDEAS

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    More about this item

    Keywords

    sanctions; export deflection; exporters dynamics; trade; Iran; foreign policy; firms; welfare;
    All these keywords.

    JEL classification:

    • F0 - International Economics - - General
    • F02 - International Economics - - General - - - International Economic Order and Integration
    • F1 - International Economics - - Trade
    • F10 - International Economics - - Trade - - - General
    • F11 - International Economics - - Trade - - - Neoclassical Models of Trade
    • F13 - International Economics - - Trade - - - Trade Policy; International Trade Organizations
    • F14 - International Economics - - Trade - - - Empirical Studies of Trade
    • F15 - International Economics - - Trade - - - Economic Integration
    • F6 - International Economics - - Economic Impacts of Globalization

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